Short-term Bitcoin traders will suffer from the Fed’s inflation battle, says BitFury CEO ⋆ ZyCrypto
advertisement
 
 
- BitFury CEO believes the Federal Reserve’s aggressive stance on inflation could hurt short-term Bitcoin traders.
- He explains that the Feds’ decisions play a role in the asset surpassing the $20,000 mark.
- Securities regulators have also come under fire for their botched attempts to regulate the cryptocurrency industry.
In an interview with CNBC, Bitfury CEO Brian Brooks shared his thoughts on the current state of the markets and expressed concern about the actions of short-term traders and the Securities and Exchange Commission (SEC).
As Bitcoin (BTC) continues to fluctuate around $20,000, critics have punched holes in claims that the asset is not a suitable hedge against inflation. The recent correlation between the digital currency and traditional markets has lent credence to the claim.
However, Brooks defended BTC, saying that the reason for the apparent lack of confidence in the asset was the Federal Reserve’s aggressive stance on inflation. The former Acting Comptroller of the Currency noted that this stance “will tend to hurt Bitcoin.”
“The more the market expects tough policy from the Fed, the less Bitcoin is needed as an inflation hedge,” Brooks said.
To clarify his point, Brooks added that the issue isn’t what inflation is, but what the market predicts inflation will be in the future. He adds that an aggressive Fed stance “is bad for short-term traders who see it as their hedge” given low future inflation expectations.
advertisement
 
 
The tango with inflation
According to the latest CPI report, US inflation hit a 40-year high at 8.5%. The numbers have been rising steadily since the beginning of the year, with the Fed taking a cautious approach to the issue.
Last week, Federal Reserve Chairman Jerome Powell announced that the body would do everything it could to fight inflation by raising interest rates. He added that the Fed would “vigorously attack inflation and reassure consumers that negative macroeconomic conditions will be a thing of the past, much to the dismay of short-term BTC holders.
However, the International Monetary Fund (IMF) is warning investors not to brace for high prices for a couple of years.
The SEC’s witch hunt
Brooks has attacked the SEC, led by Gary Gensler, over attempts to regulate the industry. Brooks noted that regulation differs from suing corporations, without specifying their opposing laws.
The SEC threatened Coinbase with litigation over a proposed lending product, beefed up its crypto-oversight unit, and was embroiled in a long-running legal battle with Ripple Labs over XRP tokens.
“Congress and the SEC need to get serious about telling people the speed limit on the crypto highway.”
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.